Families Giving back loses Tax exempt status

[MacMadame]

I'm not sure what kind of "consultant" is needed to put on a ice show - since skating clubs seem to manage shows entirely with volunteers - but I find it hard to believe that even if a consultant was needed, it was necessary to pay them a six-figure salary for an ice show that happened once a year.

Being a consultant just means they weren't an employee. It doesn't imply anything about what they did. For six figures, I'm guessing they were the ones doing the day-to-day work of putting on the show.

[Susan M]

Tara's shows ... - I always had the idea they were more about getting their owners access to skating events and skaters than really making any money. Again, not that there's anything wrong with that.

Oh, there's lots wrong with that if you sell tickets to buyers under the misrepresentation that show is benefiting a charity and get skaters to participate without fee (expenses only) thinking they are helping a charitable cause. It's really a kind of fraud.

I agree with those who think Modlin comes across as unprofessional and this fiasco (and use of words like ginormous) kind of support the image of her as immature and not responsible enough to be entrusted with anybody's money.

One of the trickier aspects of the case is that the original father of a 911 victim is still listed on official filings as President of this entity, so any action against it may need to include him. I don't know if there is any more action to come from the IRS. The late income reports were already filed last year, and their charitable status has now been revoked, so I don't know what is left for the IRS to pursue. I haven't read anything that suggests there's any question of back taxes owed or anything like that. (I don't think these 501 entities pay income taxes and it does not sound like they had any actual employees, so no payroll taxes either.)

[Cheylana]

Oh, there's lots wrong with that if you sell tickets to buyers under the misrepresentation that show is benefiting a charity and get skaters to participate without fee (expenses only) thinking they are helping a charitable cause. It's really a kind of fraud.

Couldn't agree more.

[FigureSpins]

IIRC, the benefit show originally charged the lower-level skaters an audition or event fee. The few people I knew that signed up for the earlier shows stopped because of that expense. Once or twice, you can say "Oh, but it's for a good cause," but after that, you just don't audition.

That was back in the 2004-2005 time frame. Maybe that's when the organizers changed its direction?
I definitely remember the show starting out to benefit 9/11 victims' families.

[Willowway]

Actually FigureSpins, I noticed that 'pay to audition' thing about 2 years ago (as regards one of the shows in Illinois) and mentioned it to a friend because it just didn't sound terrific to me. Now maybe no one participated and as you say, the money was theoretically for a good cause but I thought that paying to audition was a way to get further into a parent's wallet and I didn't like that as a strategy (regardless of tax exempt status).

[Jenny]

Oh, there's lots wrong with that if you sell tickets to buyers under the misrepresentation that show is benefiting a charity and get skaters to participate without fee (expenses only) thinking they are helping a charitable cause. It's really a kind of fraud.

You're missing the context of what I said. The point was regarding the motivations for putting on shows, and whether or not they made any money, and I suggested reasons why Tara would go to this effort that were more about other benefits to her than money.

Of course getting people to pay or contribute money (the site still solicits donations) or volunteer their time and not being very clear about who is benefiting is wrong. Even just being vague about it and letting people think one thing when it's in fact another is misrepresentation. But that's not what my post was about.

[manleywoman]

Actually FigureSpins, I noticed that 'pay to audition' thing about 2 years ago (as regards one of the shows in Illinois) and mentioned it to a friend because it just didn't sound terrific to me. Now maybe no one participated and as you say, the money was theoretically for a good cause but I thought that paying to audition was a way to get further into a parent's wallet and I didn't like that as a strategy (regardless of tax exempt status).

Skate For Hope in Ohio does something similar . . . to skate in the show you have to raise $$ for breast cancer. And while I've never seen their actual tax books, I do know that the woman who runs it has been building is successfully for years and that the money is actually going to breast cancer research (being a survivor herself and also many others in the show are survivors). So it can be done.

I have no idea if the Illnois Ice Dreams show benefited any charity.

[Sylvia]

I have no idea if the Illnois Ice Dreams show benefited any charity.

$1 from each ticket sold reportedly was to go to the Japanese Red Cross (this was discussed by Modlin and Weir in the video I posted).

[genevieve]

One might expect the reporting requirements to be rather Byzantine - from what I've seen, they're not. The forms that need to be filed (quarterly or annually) actually come directly to the organization. I was surprised by that - that the designated person receives the proper forms, with time to fill them out and file them. All you need to do is what you are asked to do. And if you're on a board, all you need to do is ask the designated person what has been filed. It's actually rather straight-forward. The contents of the reports are also rather obvious if the organization keeps even a rudimentary set of books. Nothing crazy, what one would expect.

Thank you, I've worked in the non-profit sector for over 20 years.

Yes, if you're on a board and all you're doing is asking if things have been filed, it's very simple.

[Jenna]

wow, I just saw her in Lake Placid last week before this story broke.

[manleywoman]

$1 from each ticket sold reportedly was to go to the Japanese Red Cross (this was discussed by Modlin and Weir in the video I posted).

Ahhhh, yes thank you. Forgot about that.

[overedge]

Being a consultant just means they weren't an employee. It doesn't imply anything about what they did. For six figures, I'm guessing they were the ones doing the day-to-day work of putting on the show.

I still don't see how that would justify a six-figure salary, since the show only happens (or happened) once a year. It's not like the person would be doing the ongoing year-round level of work involved e.g. in a touring show.

[WildRose]

The whole thing sounds like a scam to me.

[Kelleys6th]

I almost feel like a jerk that I went to some of these shows!

I always questioned in my head that if the purpose of this charity was to educate younger generations about September 11th, why was it being held in the New York City area? There is nowhere, within this NYC area, that children grow up not knowing about it.

Each year, plans for the anniversary memorial are in the news starting around June. They have been talking about this year's memorial even more so, because of it being 10 long years, and because the part of the museum will be opening.

The whole day of the memorial is televised on ABC, NBC, FOX, CBS etc. From when the first flight took off in Boston, to when the first Tower was hit (remembered with a toll of a bell and a moment of silence,) to the second plane hitting the second Tower (moment of silence and a bell toll,) to when the first Tower fell (silence again, bell again,) when the second Tower fell (bell and silence again,) to the plane hitting the Pentagon and the plane crashing in Shanksville, PA, with every victims name being read aloud.

It is an exhausting day (and I consider myself blessed that I did not know anyone personally involved.)

What I know about the show, there were two women who started it off, and the feelings towards it has waned. I do not see her as pocketing anything, and her idea of the heritage foundation was meant to do only good. The thing that gets me mad, is the kids that were involved in an important show they had to work and try-out for to become a part of, and thinking that was such an achievement for them. And the fact that this was done in the NYC area, people who went really thought they were doing good for their neighboors.

I hope they can straighten this out, and no other bad news comes from it.

[MacMadame]

I still don't see how that would justify a six-figure salary, since the show only happens (or happened) once a year. It's not like the person would be doing the ongoing year-round level of work involved e.g. in a touring show.

Well, 6 figures could be 100,000. That's not a lot of money in NYC. I think entr level software engineers make that kind of money.

And putting on a show like this is a monumental task. So they probably had a bunch of people working on it.

But it was just my speculation that they were the ones project managing the show. They could also have been hired to do PR and part of that money was for media buys or something. We just don't know with the information given...

[jlai]

I must admit I don't understand the logic of raising money through skate shows. Considering the money going into booking venues, paying skaters (and possibly flying them in and accommodating them) and all the other expenses, how much can you raise? I don't see how that can work unless the show is broadcast nationwide and people can phone in to donate.
Isn't it easier to ask skaters to put a donation link in their facebook or something?

[Cheylana]

Well, 6 figures could be 100,000. That's not a lot of money in NYC. I think entr level software engineers make that kind of money.

And putting on a show like this is a monumental task. So they probably had a bunch of people working on it.

But it was just my speculation that they were the ones project managing the show. They could also have been hired to do PR and part of that money was for media buys or something. We just don't know with the information given...

We would have had a little bit more visibility into these expenses if the "charity" had filed 990s with the IRS as it was legally obligated to do. This "charity" is a reflection of Tara -- a hot mess!

[Iceman]

Phil is not a multi-tasker? lmao

[Rafter]

$1 from each ticket sold reportedly was to go to the Japanese Red Cross (this was discussed by Modlin and Weir in the video I posted).

Oooooooh, one whole dollar? How generous!

Seems to me like this whole thing was a big scam.

[Sylvia]

AFAIK, the "Ice Dreams" shows (2 have been held in 2 years) in Bensenville, Illinois, are not a part of Modlin's "Stars, Stripes and Skates" shows/Heritage Foundation of 9/11.

From an April 15, 2011 press release by one of the Ice Dreams sponsors: http://travelproluggageblog.com/2011...-skating-tour/

For the upcoming show in Bensenville [April 30, 2011], the American Red Cross: Japan Disaster Relief fund will be its charity beneficiary. The Ice Dreams 2011 tour is also scheduled to perform in Detroit, Pittsburgh, Buffalo, Orlando, Boston, Atlanta, Nashville, Philadelphia, Cleveland, Indianapolis, Boca Raton and Greensboro, NC.